In today's market there is a dramatic increase in the presence of sellers offering title insurance in lieu of real property report with compliance. To give you a quick understanding on the matter, under Section 10.2 of the real estate contract, there is a clause stating that the seller will provide a real property report with compliance. The real property report is a survey of the land as it is presently shown.
Compliance is issued by the municipality where the property is located, this will show if the property is compliant, non-conforming or non-compliant.
When a house is sold multiple times for whatever reason, sellers for cost purposes might say that they have a real estate property report, but they don't have compliance, so they would sell it with title insurance instead.
Title insurance is a insurance policy that is available to protect the buyer from titled and untitled defects
The risk of taking a title insurance vs taking real property report with compliance, is that since it is an insurance policy, your claim can be denied and you'll need to pay "out-of-pocket" for any repairs or to change anything concerning the property to make it comply.
Title insurance is based on your risk tolerance level and future aspirations for the property. It is important that if you have any questions or concerns, you have to call your real estate lawyer and discuss your options whether to accept a Title Insurance or Real Property Report with Compliance.
Also, note that the cost of Title Insurance will depend on the value of the property. The buyer pays for the Title Insurance unless the seller is giving a credit.
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